SafeMoon Project Accused of Fraud
The US Securities and Exchange Commission (SEC) has charged the cryptocurrency project SafeMoon and its top executives for “perpetrating a massive fraudulent scheme.” The SEC claims that SafeMoon executives promised to pump the price of the token “safely to the moon,” but instead caused a significant drop in market capitalization, resulting in the misappropriation of over $200 million in project funds.
The SEC alleges that large portions of the investor funds held in SafeMoon’s liquidity pool were never locked, and the executives used millions of dollars for personal expenses, including purchasing luxury items such as McClaren cars, extravagant travel, and luxury homes.
The defendants, including SafeMoon’s creator Kyle Nagy, CEO John Karony, and CTO Thomas Smith, are charged with violating the registration and anti-fraud provisions of the Securities Act of 1933 and the anti-fraud provisions of the Securities Exchange Act of 1934.
